Is Valencia really using "Dynamic Pricing"?
Hi!
I’ve been following the stories about Oasis and the reaction from fans to the on-sale, “in demand” pricing, and technology glitches.
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One thing that caught my attention while following these stories was the tagalong story of Valencia FC using “dynamic pricing” for their tickets this season.
The guys at the Guardian’s Football Weekly podcast talked about the topic and discussed the nature of modern football and the relationship between the fans and the clubs.
Mark Langdon talks about how old-school fans are holding up the current system. And, about 70% of tickets sold in the Premier League are still in the form of season tickets.
I have some thoughts on the nature of fan development that I’ll put into a longer piece, but the Football Weekly team’s conversation was interesting.
However, many football reporters and fans were agitated about Valencia instituting “dynamic pricing” to their tickets.
As I looked into this, I recognized that this isn’t true dynamic pricing.
Instead, it is more in tune with MoPop’s “Plan Ahead Pricing” which rewards visitors for booking their tickets.
The difference comes down to incentives.
Plan early, you get the best prices.
The team gets the money earlier and knows that a fan is coming.
This does a few things that benefit everyone:
The fan is rewarded for buying early. A challenge so many teams, shows, and events are struggling with.
The team gains revenue certainty, allowing them to better manage the business. This can show up in the kinds of merch offered, F&B sold, and other aspects of the experience…or, it might mean that the team has more to invest in players.
Does it open the door for criticism?
Yes.
But every decision will.
Is it ethical?
I’d say yes.
Is it fair?
I think so because I think it rewards the ticket buyer for taking the action the team wants.
Is it dynamic pricing?
I don’t think it is truly dynamic because there is a base price.
You may get a ticket at that base price later, but there is no guarantee.
You also may pay more.
As an incentive system, I like it.
The challenge is making certain that you set the base price at a level you are happy with.
What’s your take?
Let me know by hitting reply.
Or, you can tell me in the ‘Talking Tickets’ Slack Channel.
DW
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